New Delhi, Aug. 4 -- Markets have remained volatile over the past two years, making many retail investors question where to park their money. While fixed deposits, debt funds, arbitrage funds, hybrid funds and balanced advantage funds all promise relatively lower risk, choosing the right one is far from straightforward. With inflation eroding returns, how should conservative investors balance safety, returns and tax efficiency?

"The answer depends on - When do I need the money? What is my tax slab? How large a fall can I sit through without redeeming?" says Shashank Udupa, SEBI, RAI

The tax slab does more work than people expect. For example, an investor's tax bracket matters more than many investors realise. Debt funds bought after Apr...